Q1 Richard Designs Richard Designs is a company that manufactures furniture. A furniture wholesaler, Ben Home Dcor, has approached them to provide 200 identical sets of bedroom furniture. The bedroom set must include one king sized bed, two side tables, one wardrobe and one dressing table. The wholesaler has asked Richard Designs to submit their tender for this proposal. The material required for production will include wood, screws, etc. The estimated cost for materials for 10 sets is $4,625. According to the specifications of the order, Richard Designs have concluded that it will take 36 hours to craft out each bedroom set. An 85% learning curve will apply for further productions. Once the 75th set is produced, the learning rate will cease. The time taken for the 75th set will apply to the remaining production. Labour is available at the rate of $10 per hour. The company usually works 40,000 labour hours per annum. The company usually utilized the high low method to analyze overheads. Overheads are accounted based on labour hours worked. Below are the overhead costs for the past four months. Required: a) As a manager of Richard Designs, calculate the total cost of the project in order to prepare the tender. b) With a learning rate of 85%, it is given that the second bedroom set will take 32.4 hours for production. Justify the calculations